Strong 2024 growth of 6.8% underpins the forecast, though MAS warns of moderation due to global headwinds.

The Singapore financial services sector is projected to grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2029, a figure aligned with the ITM 2025 target range and supported by a standout 6.8% growth in 2024. The forecast, published by SingaporeMarketResearch.com, reflects the sector's continued importance as a pillar of the city-state's economy. Growth is driven by digital banking advancements, fintech innovation, and regulatory support that have collectively transformed Singapore's financial landscape. The 4.0% CAGR sits comfortably within the 4%–5% annual growth target set by the Financial Services Industry Transformation Map (ITM) 2025, which the Monetary Authority of Singapore (MAS) unveiled in 2022.

Growth rate (%) (%)Source: Orionmano Industries

2024 Performance: A Standout Year

The financial services sector recorded exceptional growth of 6.8% in 2024, more than doubling the 3.1% expansion posted in 2023, according to data presented by MAS managing director Chia Der Jiun at a July 2025 media briefing. This growth was broad-based across segments, including banking, fund management, insurance, and activities auxiliary to financial services, which largely comprise payments firms. A notable milestone was achieved when assets under management crossed S$6 trillion for the first time in 2024, underscoring Singapore's deepening role as a global wealth management hub.

Annual growth rate (%) (%)Source: Orionmano Industries

ITM 2025: On Track for Growth and Jobs

The sector's performance over the ITM 2025 monitoring period has matched or exceeded stated targets. The average annual growth rate from 2021 to 2024 stood at 4.7%, comfortably within the ITM target range of 4% to 5% per annum. Job creation has also surpassed expectations: net jobs created averaged 4,400 per year from 2021 to 2024, exceeding the ITM 2025 target of 3,000 to 4,000 net jobs annually. Critically, more than 90% of these new positions went to local workers, a metric that aligns with the government's broader objective of developing a skilled domestic workforce for the financial sector. Prime Minister Lawrence Wong noted at the ITM 2025 launch in September 2022 that over 3,000 Singaporeans held senior roles in the financial sector, up more than 80% compared to 2016.

Headwinds and the Outlook Beyond 2025

Despite the strong momentum, MAS managing director Chia Der Jiun warned that the recent pace of growth is unlikely to persist. Speaking at the July 2025 media conference, Chia cited slower global growth and tariff uncertainties as key headwinds. "The triggers could include an escalation of trade conflict, geopolitical conflict, and heightened concerns from investors over financial and fiscal policy," he said. The MAS remains vigilant to risks in global markets transmitting to Singapore.

The sector's trajectory, however, remains positive but tempered. The 4.0% CAGR forecast for 2024–2029 reflects a normalization after an unusually strong 2024, with sustained digital transformation and regulatory support mitigating downside risks from global trade tensions. Singapore's continued establishment as a leading Asian financial hub—supported by its robust regulatory framework, strategic location, and proactive government stance on financial innovation—provides a structural buffer against cyclical downturns. As SingaporeMarketResearch.com notes, the sector's growth underscores its potential as one of the most dynamic industries in the region, with particular strength in digital banking, wealth management, and insurance.

For institutional investors and financial services firms operating in or entering the Singapore market, the 4.0% CAGR forecast signals a mature but still expanding sector. The growth narrative has shifted from the exceptional post-pandemic rebound of 2024 to a more sustainable expansion trajectory. The key variables to monitor will be the evolution of global trade policy, geopolitical tensions in Asia, and the pace of digital adoption in traditional banking and wealth management segments. The MAS's heightened vigilance on financial and fiscal policy risks suggests that regulatory oversight will remain a defining feature of the operating environment, even as the sector continues to grow.